Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

Just a brief response. I thank the Deputy for his contribution and his support for the Revised Estimates. He made a point that I agree with absolutely, namely, that what is being done today is not enough. He is right. These are Revised Estimates to allow us to pay for what has already been announced, but we will make further announcements as part of the July stimulus package. That will require a further Supplementary Estimate from the House for us to provide additional grants, supports and loan guarantees to business. We will revert to the House on that matter in a few weeks.

Regarding austerity, I have been in a Government during boom and bust and have been around for both austerity and times in which we were able to provide record levels of spending.

I know, and I hope the House knows, that austerity is never a policy choice. It is what is done when one has no choice because one either loses the confidence of the markets or of the European institutions. This country ten or 12 years ago lost the confidence of both the money markets and the European Central Bank. That is why the country at the time, and I was not in government at the time, ended up in a bailout and ended up in austerity. We are pursuing the right course now by increasing spending and by stimulating the economy. It is definitely the right thing to do, but that is only sustainable for as long as we maintain the confidence of the European institutions and the money markets. That is why we need to make sure we do not go too far, that we have a deficit that is in the mid range of European countries and that we do not become the country with the highest deficit and highest debt. That is where one starts to lose the confidence of the markets and that is where things go wrong again. They are really the parameters we must be aware of over the next couple of years.

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